What sections of the Face Foundrie Franchise Agreement are modified by the releases described in the addendum?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ADDENDUM (the "Addendum") is made and entered into by and between FACE FOUNDRIÉ FRANCHISING L.L.C., a Minnesota limited liability company ("Franchisor") with its |
|---|
| principal |
| business |
| address |
| at |
| 6446 |
| Flying |
| Cloud |
| Drive, |
| Eden |
| Prairie, |
| Minnesota |
| 55344, |
| and |
| , a ("Franchisee"), whose principal |
| business address is |
| 1. |
| BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement |
| dated, 20 (the "Franchise Agreement"). This Addendum is annexed to |
| and forms part of the Franchise Agreement. This Addendum is being signed because |
| (a) the Facial Bar that |
| Franchisee will operate under the Franchise Agreement will be located in Maryland; and/or (b) any of the |
| offering or sales activity relating to the Franchise Agreement occurred in Maryland. |
| 2. |
| RELEASES. The following is added to the end of Sections 13.02 and 15.03 of the Franchise |
| Agreement: |
| Any release required as a condition of renewal, sale and/or assignment/transfer will not apply |
| to |
| any claims or liability arising under the Maryland Franchise Registration and Disclosure |
| Law. |
| 3. |
| INSOLVENCY. |
| The following sentence is added to the end of Section 14.02 |
| of the |
| Franchise Agreement: |
| Section 14.02 may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 |
| et seq.). |
| 4. |
| FORUM FOR LITIGATION. The following language is added to the end of Section 18.04 |
| of the Franchise Agreement: |
| Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise |
| Registration and Disclosure Law. |
| 5. |
| GOVERNING LAW. The following statement is added at the end of Section 19.04 of the |
| Franchise Agreement: |
| Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall |
| govern any claim arising under that law. |
| 6. |
| LIMITATION OF CLAIMS. The following is added to the end of Section |
| 18.06 of the |
| Franchise Agreement: |
| Franchisee must bring any claims arising under the Maryland Franchise |
| Registration and Disclosure Law within three years after Franchisor grants Franchisee |
| the franchise. |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the addendum modifies specific sections of the Franchise Agreement related to releases, depending on the state where the Facial Bar will be located. For franchisees operating in Maryland, the releases outlined in Sections 13.02 and 15.03 of the Franchise Agreement are modified. Specifically, any release required for renewal, sale, or assignment/transfer will not apply to claims or liabilities arising under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees in Maryland retain their rights under Maryland franchise law, even when signing releases related to franchise operations.
For franchisees in New York, the addendum modifies Sections 13.02 and 15.03, stating that any release required for renewal, sale, or assignment/transfer will not apply to the extent prohibited by the New York State General Business Law. Additionally, Section 14.01 is modified to allow the franchisee to terminate the agreement on any grounds available by law under the provisions of Article 33 of the General Business Law of the State of New York. Section 18.01 is modified to address injunctive relief.
For franchisees operating in Minnesota, the releases outlined in Sections 13.02 and 15.03 of the Franchise Agreement are modified, so that any release required as a condition of renewal, sale and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law. Additionally, Sections 14.03 and 15.01 are modified to comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, requiring that the franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal, except in certain specified cases. Section 5.04 is modified to include that Face Foundrie will protect the franchisee's right to use the marks and will indemnify the franchisee from any loss, costs, or expenses arising out of claims regarding the franchisee's use of the marks in accordance with Minn. Stat. Sec. 80C 12, Subd. 1(g). Section 18.04 is modified to state that nothing in the agreement will abrogate or reduce any of franchisee's rights under Minnesota Statutes Chapter 80.C or franchisee's rights to any procedure, forum, or remedies that the laws of the jurisdiction provide.